Answer:
A. Dr Bad Debt Expense$5,350
Cr Allowance for Doubtful account$5,350
B. Dr Bad Debt Expense $2,800
Cr Allowance for Doubtful account$2,800
Explanation:
Preparation of the journal entry for the estimated bad debts
A. Based on the information given the Journal entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts will be:
Dr Bad Debt Expense$5,350
Cr Allowance for Doubtful account$5,350
[(4%*90,000)-1,750]
B. Based on the information given the Journal entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts will be:
Dr Bad Debt Expense $2,800
Cr Allowance for Doubtful account$2,800
[(5%*90,000)-1,700]
Steelcase has received orders of 2400, 2200, 2700, and 2500 units of a special-purpose panel for each of the next four months. SC can meet these demands by producing the panel, by drawing from its inventory, or by using any combination of the two alternatives. The production costs during each of the next four months are projected to be $74, $75, $76, and $76.5 per unit. Because costs are rising each month, SC might be better off producing more panel than it needs in a given month and storing the excess. Production capacity, though, cannot exceed 4000 units in any one month. The monthly production is finished at the end of the month at which time the demand is met. Any remaining panel is then stored in inventory at a cost of $1.2 per panel for each month that it remains there. If production level is increased from one month to the next, then the company incurs a cost of $0.5 per unit of increased production to cover the additional labor and/or overtime. Each unit of decreased production incurs a cost of $0.3 to cover the benefits of unused employees. The production level during the previous month was 1800 units, and the beginning inventory is 1000 units. Inventory at the end of the fourth month must be at least 1500 units to cover anticipated demand. Formulate a production plan for SC that minimizes the total costs over the next four months
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
The Production Planning of the Steel Case:
Demand (units):
Month 1: 2400
Month 2: 2200
Month 3: 2700
Month 4: 2500
Production Cost ($/unit):
Month 1: 74
Month 2: 75
Month 3: 76
Month 4: 76.5
Inventory cost ($/panel):
Month 1: 1.2
Month 2: 1.2
Month 3: 1.2
Month 4: 1.2
Starting Inventory = 1000
Ending Inventory at the end of 4th month = 1500
Starting Production Level = 1800
Cost of changing production level = $0.5/unit (increase)
= $0.3/unit (decrease)
Decision Variables:
Let Pn be the production in the month n.
[tex]I_{n}[/tex] be the inventory at the end of month n.
[tex]I_{o}[/tex] be the initial inventory at the start of month 1.
Objective Function:
The production cost is given below:
74[tex]P_{1}[/tex] + 75[tex]P_{2}[/tex] + 76[tex]P_{3}[/tex] + 76.5[tex]P_{4}[/tex]
And the holding cost is given below:
1.2( [tex]I_{1} + I_{2} + I_{3}[/tex] )
And,
Constraints:
In order to meet the demand, we have the following constraints:
[tex]P_{1}[/tex] + [tex]I_{o}[/tex] [tex]\geq[/tex] 2400
[tex]P_{2}[/tex] + [tex]I_{1}[/tex] [tex]\geq[/tex] 2200
[tex]P_{3}[/tex] + [tex]I_{2}[/tex] [tex]\geq[/tex] 2700
[tex]P_{4}[/tex] + [tex]I_{3}[/tex] [tex]\geq[/tex] 2500
Now, considering the inventory level at the end of each month:
[tex]I_{o}[/tex] = 1000
[tex]I_{1}[/tex] = [tex]P_{1}[/tex] - [tex]I_{o}[/tex] - 2400
[tex]I_{2}[/tex] = [tex]P_{2}[/tex] - [tex]I_{1}[/tex] - 2200
[tex]I_{3}[/tex] = [tex]P_{3}[/tex] - [tex]I_{2}[/tex] - 2700
[tex]I_{4}[/tex] = [tex]P_{4}[/tex] - [tex]I_{3}[/tex] - 2500
[tex]I_{4}[/tex] [tex]\geq[/tex] 1500
It is given that, at maximum 4000 units can be produced each month
So, we have the following constraints:
[tex]P_{n}[/tex] [tex]\leq[/tex] 4000 for n = 1, 2, 3 ,4
Also,
[tex]P_{n}[/tex] [tex]\geq[/tex] 0
[tex]I_{n}[/tex] [tex]\geq[/tex] 0
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs.
Products Sales Revenue Traditional ABC
Product 540X $195,000 $56,000 $46,600
Product 137Y 158,000 55,000 37,000
Product 249S 84,000 10,000 37,400
Instructions
a) For each product line, compute operating income using the traditional costing system.
b) For each product line, compute operating income using the activity-based costing system
c) Using the following formula, compute the percentage difference in operating income for each of the product lines of Ayala:{Operating Income (ABC)-Operating Income traditional cost)]divided operating Income (traditional cost)(round the percentage to two decimals).
Answer:
a. Operating income of Product 540X under traditional costing system: Operating income = Revenue - Operating cost = $195,000 - $56,000 = $139,000
Operating income of Product 137Y under traditional costing system: Operating income = Revenue - Operating cost = $158,000 - $55,000 = $103,000
Operating income of Product 249S under traditional costing system: Operating income = Revenue - Operating cost = $84,000 - $10,000 = $74,000
b. Operating income of Product 540X under activity-based costing system: Operating income = Revenue - Operating cost = $195,000 - $46,600 = $148,400
Operating income of Product 137Y under activity-based costing system: Operating income = Revenue - Operating cost = $158,000 - $37,000 = $121,000
Operating income of Product 249S under activity-based costing system: Operating income = Revenue - Operating cost = $84,000 - $37,400 = $46,600
c. % of the difference between the operating income of Product 540X under traditional costing system and ABC system = Operating Income (ABC) - [Operating Income (Traditional cost)/Operating Income (Traditional cost)] * 100
= $148,400 - $139,000/$139,000 * 100
= $9,400/$139,000 * 100
= 0.0676258992805755 * 100
= 6.76%
% of the difference between the operating income of Product 137Y under traditional costing system and ABC system = Operating Income (ABC) - [Operating Income (Traditional cost)/Operating Income (Traditional cost)] * 100
= $121,000 - $103,000/$103,000 * 100
= $18,000/$103,000*100
= 0.1747572815533981 * 100
= 17.48%
% of the difference between the operating income of Product 249S under traditional costing system and ABC system = Operating Income (ABC) - [Operating Income (Traditional cost)/Operating Income (Traditional cost)] * 100
= $46,600 - $74,000/$74,000 * 100
= -$27,400/$74,000 * 100
= -0.3702702702702703 * 100
= -37.03%
You would like to lock in the selling price on 50,000 bushels of wheat, which you plan to harvest and deliver to the market in September. The September futures price quote is currently 899?4. If you write September futures contracts on your wheat, you will be guaranteed a total price of ________ for your crop. Each contract is quoted in cents and 1/8ths of a cent per bushel with a contract size of 5,000 bushels.
a. $45.637.50.
b. 50 $541650.00.
c. $449750.00.
d. $297700.50.
e. $2.971.000.
Answer:
c. $449750.00.
Explanation:
1/8 of 10 lots of bushels of 5,000 per lot = 1.25
Therefore, the price quote of 899'4 cents is written as 899'4+1.25 = $8.995
Total value = Wheat(bushels) * Price Quote
Total value = 50,000 * $8.995
Total value = $449,750
Your SWOT analysis reveals no obvious options for growth with your current product lines. So you decide to use some retained earnings the firm has been saving and launch new product lines. After careful analysis you decide to launch a line of battery chargers and, separately, a line of ceiling fans. Which corporate-level strategy are you pursuing
Answer:
Unrelated diversification.
Explanation:
Analyzing the information above, it is correct to say that the company is using the corporate level strategy of unrelated diversification.
This strategy occurs when a company decides to expand its product line by diversifying products that are not related to each other, as is the case above, where it is intended to launch a line of battery chargers and separately a line of ceiling fans. As these products do not correlate, the company is looking to start its activities in different types of market, which can be configured as a positive strategy for market gain and greater profitability for the company.
Assume Italy and Chad can both produce grain and dates, and that the only limited resource is the farming labor force, meaning that land, water, and all other resources are plentiful in both countries. Each farmer in Italy can produce 10 t of grain or 5 t of dates in a season. Each farmer in Chad can also produce 10 t of grain or 25 t of dates.
1. Which country has the absolute advantage in producing dates?
A. Italy.
B. Chad.
C. Neither.
2. Which country has the absolute advantage in producing grain?
A. Italy.
B. Chad.
C. Neither.
3. Which country has the competitive advantage in producing dates?
A. Italy.
B. Chad.
C. Neither.
4. Which country has the comparative advantage in producing grain?
A. Italy.
B. Chad.
C. Neither.
Answer:
chad
neither
chad
Italy
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
The opportunity cost of Italy in producing one unit of grain = 5/10 = 0.5t dates
The opportunity cost of Italy in producing one unit of dates = 10/5 = 2grains
The opportunity cost of Chad in producing one unit of grain = 25/10 = 2.5 dates
The opportunity cost of Chad in producing one unit of dates = 10/25 = 0.4 grains
Italy has a comparative advantage in the production of grains while Chad has a comparative advantage in the production of dates
A country has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries. Chad produces 25t of dates while Italy produces 5t of dates, this shows that Chad has an absolute advantage in the production of dates. Both Italy and Chad produces the same quantity of grains so neither have an absolute advantage in the production of grains.
Mrs. Sarr operates a business in a competitive market. The current market price is $8.10. At her profit-maximizing level of production, the average variable cost is $8.00, and the average total cost is $8.25. Mrs. Sarr should shut down her business in the short run but continue to operate in the long run.
A. True
B. False
Answer:
B. False
Explanation:
Given that
Current market price = $8.10
Average variable cost = $8
And, the average total cost = $8.25
As we can see that the current market price is more than the average variable cost so it would be operate in the short run
Also the total cost is more than the current market price so it would be shut down in the long run
Therefore the given statement is false
A risk management program must be implemented and periodically monitored to be effective. This step requires the preparation of a risk management policy statement. The cooperation of other departments is also necessary. a. What benefits can the firm expect to receive from a well-prepared risk management policy statement
Answer: The ability to see risks that are not predicted and accessing funds from financial institutions
Explanation:
Here are some of the benefits of well-prepared risk management policy statement;
1) The ability to see risks that are not expected; a team of experts would be engaged to identify and give an overview of all forms of risk that could be possibly involved.
2) The organization attracts credit easily; Organisations attract credit from financial institutions when they are able to provide assessments that they carried out regarding risks. This gives the client's confidence that they can entrust their finance to the organization due to the firm have considered all forms of pending failures and that which would occur.
When McDonald's sells cheeseburgers in India, there is absolutely no beef or pork used. The McDonald's Menu in India features Indian burgers that are 100 percent vegetarian. India is predominantly a Hindu country, and Hindus are strict in terms of not eating beef because they consider the cow as a holy manifestation of the divinity. This scenario is an example of _______.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) product innovation
b) product standarization
c) product variation
d) product adaptation
And the correct answer is the option D: Product adaptation.
Explanation:
To begin with, the term of "Product Adaptation" in the field of marketing and management is known to refer as the method that is necessary to use in order to adapt a company's strategy to a target audience that tends to be quite different that the usual audience. So in this case the most important thing to have in mind when applying a strategy like this is that the focus will be in the huge difference that the consumers have according to the regular ones, so when the managers see the difference they will be able to focus on a better product to give the consumers.
On January 1, 2013, Springs Industries issued $18,000,000 of 10% ten-year bonds at 102. The bonds are callable at the option of Springs at 104. Springs pays interest annually and has recorded amortization of the bond premium on the straight-line method (which was not materially different from the effective-interest method). On December 31, 2019, Springs called in $6,000,000 of the bonds. Ignoring income taxes, Springs should report a gain or loss of:_________
Answer:
Springs should report a loss of $204,000
Explanation:
To be redeemed Premium on bonds payable = 6,000,000 * 2% = $120,000
The amortization of bond premium (annual) = 120,000/10 = $12,000
Bonds premium amortized in 7 years (From 2013 to 2019) = 12,000 * 7 = $84,000
Unamortized bond premium = 120,000 - 84,000 = $36,000
Carrying value of bonds = Face value of the bonds + un-amortized bond premium at the redemption date = 6,000,000 + 36,000 = $6,036,000
Redemption price of bonds = 6,000,000 * 104% = $6,240,000
Loss on bonds redemption = Redemption price - Carrying value of bonds = 6,240,000 - 6,036,000 = $204,000. So, Springs should report a loss of $204,000.
As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report:
JAN FEB MAR APR
Units produced 2,195 1,695 2,695 2,895
Hours per machine 310 188 385 309
Number of machines 4 6 5 4
Find the average of the monthly productivity figures (units per machine hour). (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
The average of the monthly productivity figures (units per machine hour):
JAN FEB MAR APR
Units produced 2,195 1,695 2,695 2,895
Total machine hours 1,240 1,128 1,925 1,236
Average productivity 1.77 1.50 1.40 2.34
Explanation:
a) Data and Calculations:
Production report:
JAN FEB MAR APR
Units produced 2,195 1,695 2,695 2,895
Hours per machine 310 188 385 309
Number of machines 4 6 5 4
Total machine hours 1,240 1,128 1,925 1,236
b) Productivity, according to Organization for Economic Co-operation and Development (OECD), is the ratio between the output volume and the volume of inputs. This means that productivity measures compute how efficiently production inputs are used to produce output. It can be measured with respect to labor, capital, and other production inputs or in aggregate with respect to all production inputs.
Which of the following is not true about communisim? 1. it was outlined by Karl Marx in the famous text "Communist Manifesto". 2. It has a weak central government 3. Because the government makes production decisions, there tends to be a lot of shortages and surpluses. 4. There is public ownership of all enterprises.
Which of the following is not true about communisim? 1. it was outlined by Karl Marx in the famous text "Communist Manifesto". 2. It has a weak central government 3. Because the government makes production decisions, there tends to be a lot of shortages and surpluses. 4. There is public ownership of all enterprises.
Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2013, net credit sales totaled $4,900,000, and the estimated bad debt percentage is 1.90%. The allowance for uncollectible accounts had a credit balance of $46,000 at the beginning of 2013 and $42,000, after adjusting entries, at the end of 2013.
If the company uses the direct write-off method, what would bad debt expense be for 2013?
Answer:
$97,100
Explanation:
Calculation for If the company uses the direct write-off method, what would bad debt expense be for 2013
Beginning Balance $46,000
Add Bad debt expense for 2013
(1.90% x $4,900,000) $93,100
Less Ending balance ($42,000)
Bad debt Expense $97,100
Therefore If the company uses the direct write-off method, what would bad debt expense be for 2013 is $97,100
Exchanged all of the securities for shares of preferred stock, which were not mandatorily redeemable. Market values at the date of the exchange were for the securities and per share for the preferred stock. The shares were retired immediately. What journal entries should record in connection with this transaction?
Answer:
The full question is as follows "The following accounts were among those reported on Good Corp.'s balance sheet at December 31, year 1: Available-for-sale securities (market value $140,000) $80,000 Preferred stock, $20 par value, 20,000 shares issued and outstanding 400,000 Additional paid-in capital on preferred stock 30,000 Retained earnings 900,000 On January 20, year 2, Good exchanged all of the available-for-sale securities for 5,000 shares of Good's preferred stock. Market values at the date of the exchange were $150,000 for the available-for-sale securities and $30 per share for the preferred stock. The 5,000 shares of preferred stock were retired immediately after the exchange. Prepare the general journal entry, without explanation, to record this event."
Date General Journal Entry Debit Credit
Preferred stock A/c $100,000
(5000*$20)
Add. paid-in capital on preferred stock $7,500
(30000 * 1/ 4)
Retained earnings $42,500
Trading securities A/c $140,000
Gain on exchange of securities $10,000
A T-bill quote sheet has 90-day T-bill quotes with a 5.77 ask and a 5.71 bid. If the bill has a $10,000 face value, an investor could sell this bill for _____.
a. $9,857.25
b. $9,855.75
c. $9,859.21
d. $10,000
Answer:
a. $9,857.25
Explanation:
Price = Face value * (1 - Bid*Days/360)
Price = $10,000 * (1 - 5.71%*90/360)
Price = $10,000 * (1 - 5.71%*0.25)
Price = $10,000 * (1 - 0.014275)
Price = $10,000 * 0.985725
Price = $9,857.25
Which of the following statements is most accurate regarding sufficient and appropriate documentation?
A. Audit documentation is the property of the client, and sufficient and appropriate copies should be retained by the auditor for at least 5 years.
B. Sufficient and appropriate documentation should include evidence that it has been reviewed.
C. Accounting estimates are not considered sufficient and appropriate documentation.
D. If additional evidence is required to document significant findings or issues, the original evidence is not considered sufficient and appropriate and therefore should be deleted from the working papers.
Answer:
A
Explanation:
You are analyzing a large stable company. For the year ending 12/31/2015 the company reported earnings of $58,900 and book value at the end of 2015 was $371,700. You expect earnings to grow at 5% a year in perpetuity, and the dividend payout ratio of 70% to continue. The company borrows at 8%, and has a cost of equity of 12%. The company has 25,000 shares outstanding. What is your estimate of price per share using the dividend discount model at 12/31/2015
Answer:
$24.74
Explanation:
Total earnings for the year ending 12/31/2015= $58,900
dividend payout ratio=70%
current year total dividends= $58,900*70%
current year total dividends=$41,230.00
current dividend per share=current year total dividends/shares outstanding
current dividend per share=$41,230.00/25,000
current dividend per share=$1.6492
expected dividend=current dividend per share*(1+growth rate)
growth rate of dividends forever=5%
expected dividend=$1.6492*(1+5%)
expected dividend=$1.73166
share price=expected dividend/(cost of equity-growth rate)
cost of equity=12%
share price=$1.73166/(12%-5%)
share price=$24.74
On April 1, Cyclone Co. purchases a trencher for $280,000. The machine is expected to last five years and have a salvage value of $40,000. Exercise 8-12 Double-declining-balance, partial-year depreciation LO C2 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double-declining-balance method. (Enter all amounts as positive values.)
Answer:
Year 1 = $84,000Year 2 = $78,400Explanation:
Double declining means that the asset is depreciating at double the rate that it would with straight method:
Straight line depreciation = 280,000 / 5 years
= $56,000
Rate = 56,000 / 280,000 = 20%
Double declining will be:
= 20 * 2 = 40%
Year 1 Depreciation:
= 40% * 280,000 * 9/12 months
= $84,000
Year 2 Deprecation:
= 40% * Net book value
= 40% * (280,000 - 84,000)
= $78,400
Grimaldi Chocolates projects its factory rent to be $8,000 in July when 4,000 pounds of candy are expected to be produced. If rent is a fixed cost, and if production is expected to increase to 6,000 units in August, what is the expected cost of rent in August
Answer:
$8,000
Explanation:
With regards to the above information, the expected cost of rent in August is $8,000. This is because the $8,000 is fixed in total.
We know that fixed costs are those costs that do not vary with the level of output. Invariably, it means they remained the same as activity level or output changes.
Although, production increases to 6,000 units in August from 4,000 candy pounds of candy that are expected to be produced in March, yet, the fixed cost of $8,000 would remain the same whether or not production increases or decreases.
Dollar General operates midsized retail stores in rural towns. It has been expanding the variety of products available in its stores. Some locations now offer fresh produce and an increased assortment of fresh or frozen food items. Dollar General hopes the addition of new products will lead existing customers to purchase more items when they shop, which will in turn increase revenues for the chain. This is an example of the _______ strategic alternative according to Ansoff's matrix.
Answer:
product development
Explanation:
The product development strategy is a strategy where the new products would be developed for the pre-existed market or for the present customers. As in the given situation, since dollar general produced for its existing customers
Therefore as per the given situation it is an example of product development
A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is offering a 6% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $55 instead
Answer:
$58.3
Explanation:
Interest = principal x interest x time
$55 x 0.06 x 1 = $3.3.
Amount = principal + interest
= $55 + $3.3. = $58.3
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 48,000 shares of common stock in exchange for $480,000 in cash. Purchased equipment at a cost of $58,000. $19,000 cash was paid and a notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $114,000. The company uses the perpetual inventory system. Credit sales for the month totaled $210,000. The cost of the goods sold was $88,000. Paid $6,800 in rent on the warehouse building for the month of March. Paid $7,800 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. Paid $88,000 on account for the merchandise purchased in 3. Collected $73,000 from customers on account. Recorded depreciation expense of $2,800 for the month on the equipment. Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero. Prepare a trial balance from the ending account balances.
Answer:
Wainwright Corporation
1. T-accounts:
Cash
Accounts Titles Debit Credit
Common stock $480,000
Equipment $19,000
Rent Expense 6,800
Prepaid insurance 7,800
Accounts payable 88,000
Accounts receivable 73,000
Balance $431,400
Common Stock
Accounts Titles Debit Credit
Cash $480,000
Equipment
Accounts Titles Debit Credit
Cash $19,000
Notes payable 39,000
Balance $58,000
Notes Payable
Accounts Titles Debit Credit
Equipment $39,000
Inventory
Accounts Titles Debit Credit
Accounts payable $114,000
Cost of goods sold $88,000
Balance 26,000
Accounts Payable
Accounts Titles Debit Credit
Inventory $114,000
Cash $88,000
Balance 26,000
Cost of Goods Sold
Accounts Titles Debit Credit
Inventory $88,000
Sales Revenue
Accounts Titles Debit Credit
Accounts receivable $210,000
Accounts Receivable
Accounts Titles Debit Credit
Sales revenue $210,000
Cash $73,000
Balance 137,000
Rent Expense
Accounts Titles Debit Credit
Cash $6,800
Prepaid Insurance
Accounts Titles Debit Credit
Cash $7,800
Depreciation Expense
Accounts Titles Debit Credit
Accumulated depreciation $2,800
Accumulated Depreciation - Equipment
Accounts Titles Debit Credit
Depreciation Expense $2,800
2. Trial Balance
As of April 30, 2021:
Accounts Titles Debit Credit
Cash $431,400
Common stock $480,000
Equipment 58,000
Notes payable 39,000
Inventory 26,000
Accounts payable 26,000
Cost of goods sold 88,000
Sales revenue 210,000
Accounts receivable 137,000
Rent expense 6,800
Prepaid insurance 7,800
Depreciation expense 2,800
Accumulated depreciation 2,800
Totals $757,800 $757,800
Explanation:
To prepare T-accounts, just follow a simple step by posting each transaction to two accounts or more as the case may. After all transactions have been posted, balance the accounts by identifying the differences between the two sides of each account. Use the balances (where only one transaction is recorded in an account, that becomes the balance) to extract the Trial Balance.
During its first year of operations, Fisher Plumbing Supply Co. had sales of $480,000, wrote off $7,700 of accounts as uncollectible using the direct write-off method, and reported net income of $52,800. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 1/2% of sales would be uncollectible.
Answer:
Sales $480,000
Less: Expenses (Bal Figure) $419,500
Less: Write Off Account $7,700
Net Income $52,800
If Allowance Method Is Used
Sales $480,000
Less: Expenses $419,500
Less: Write Off Account (1.5% of 480,000) $7,200
Net Income $53,300
Current assets for two different companies at fiscal year-end are listed here. One is a manufacturer, Rayzer Skis Mfg., and the other, Sunrise Foods, is a grocery distribution company. Account Company 1 Company 2 Cash $ 13,000 $ 11,000 Raw materials inventory — 46,750 Merchandise inventory 49,750 — Work in process inventory — 34,000 Finished goods inventory — 54,000 Accounts receivable, net 58,000 72,000 Prepaid expenses 2,500 500 Required: 1. Identify which set of numbers relates to the manufacturer and which to the merchandiser. 2a. & 2b. Prepare the current asset section for each company from this information.
Answer:
Part 1
Manufacturer = Company 2
Merchandiser = Company 1
Part 2
Current Assets Section for Company 1
Current Assets $
Merchandise Inventory 41,500
Accounts Receivable, Net 60,000
Prepaid Expenses 5,000
Cash 7,000
Total Current Assets 113,500
Current Assets Section For Company 2
Current Assets $
Raw Materials Inventory 38,500
Work In Process Inventory 28,000
Finished Goods Inventory 48,000
Accounts Receivable, Net 70,000
Prepaid Expenses 1,000
Cash 5,000
Total Current Assets 190,500
Explanation:
Note : I have attached the full question as an image below !
1.Which of the following products would it not be necessary to develop HACCP flow chart?
A)Caesar salad
B)Tuna salad
C)Seafood salad
D)Citrus fruit salad
2. Which of the following criteria is least important when determining a food operation’s need for a particular piece of equipment? Will the equipment:
A)Produced a significant saving in labor and material?
B)Make the facility more attractive to customers?
C)Result in improved quality of food?
D)Improve sanitation?
Answer:
1. The product which is not necessary to develop HACCP flow chart for is:
A) Caesar salad
2. The least important criterion when determining a food operation's need for a particular piece of equipment is whether the equipment will:
B) Make the facility more attractive to customers?
Explanation:
These two regulatory bodies run the HACCP programs. The Food and Drug Administration (FDA)regulates the program for juice, while the United States Department of Agriculture (USDA) regulates the program for meat. Their purposes are to ensure food safety and protect public health. A HACCP flow chart diagrammatically depicts the process flow of a food operation, starting from the incoming materials to the end product for the customer.
Answer:
A) Caesar salad is necessary to develop HACCP flow chart.
B) Will the equipment make the facility more attractive to customers? is the least important criteria when determining a food operation’s need for a particular piece of equipment
Explanation:
1.
A HACCP flow chart refers to a graphical representation of the complete manufacturing process of the business of food. This chart contains information regarding the raw material, serving the finished products, etc.
Caesar salad is necessary to develop a HACCP flow chart.
2.
To determine a need for food operation for a particular piece of equipment, it's not necessary to check if the equipment can make the facility more attractive to customers
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Xercise Cycles Company has provided its year ended accounts receivables that were uncollected. The Controller has asked you to help prepare the Aging of Accounts Receivable Schedule and the corresponding journal entries. Use the information included in the Excel Simulation and the Excel functions described below to complete the task.
1) Calculate the number of days unpaid, USING THE EXCEL DAYS FUNCTION (fx).
2) Use the information above to complete the Aging of Accounts Recievable Schedule Below.
Create a formula for each age category, using the Excel IF and AND FUNCTION (fx) to determine where each customer amount belongs.
3) Prepare the adjusting journal entry for recording bad debt expense if the allowance for doubtful accounts had the following unadjusted balance:
4) Prepare the adjusting journal entry for recording bad debt expense if the Allowance for Doubtful Accounts had the following unadjusted balance:
Answer:
In the number of days unpaid column (E8), input the formula; "=DAYS(D8, C8)" then copy it down to the last item on the table.
Explanation:
Answering just the first question, the DAYS function is used to calculate the difference between day timelines. The function accepts two parameters, the first date which is the current date we are subtracting from, and the second date which is the previous date.
Return to questionItem 4 Required information Skip to question Retained earnings at the beginning of the period was $300. During the period, Kilgore Company earned revenue of $1,100 and incurred expenses of $400. Assuming dividends paid to stockholders were $200, the ending balance in retained earnings must have been:
Answer:
$800
Explanation:
The first task here is to determine the amount of net income recognized in the year which is the earned revenue minus incurred expenses as shown thus:
net income=earned revenue-incurred expenses
earned revenue= $1,100
incurred expenses=$400
net income=$1,100-$400=$700
retained earnings for the period=net income-dividends paid
dividends paid=$200
retained earnings for the period=$700-$200=$500
ending balance of retained earnings=beginning retained earnings+retained earnings for the period
beginning retained earnings=$300
ending balance of retained earnings=$300+$500=$800
The clear, broad, underlying industry category or market sector of an organization's offering defines its
O shareholders.
O objectives
O culture
Ο Ο
business
Explanation:
thats difficult
Street Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:
Engine parts $740,000
Shop direct labor 500,000
Shop and repair equipment depreciation 40,000
Shop supervisor salaries 133,000
Shop property taxes 22,000
Shop supplies 10,000
Advertising expense 20,000
Administrative office salaries 71,400
Administrative office depreciation expense 6,000
Total costs and expenses $1,542,400
The average shop direct labor rate is $20 per hour.
Determine the predetermined shop overhead rate per direct labor hour.
Answer:
$8.20/Direct Labor hours
Explanation:
Cost of performing engine repair work = Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies
Cost of performing engine repair work = $40,000 + $133,000 + $22,000 + $10,000
Cost of performing engine repair work = $205,000
Direct Labor Hours = Direct Labor/Direct Labor rate
Direct Labor Hours = 500,000/$20 per hour
Direct Labor Hours = 25,000 hours
Predetermined shop overhead rate per direct labor hour = $205,000 / 25,000 Hours = $8.20/Direct Labor hours
The 2017 Annual Report of Tootsie Roll Industries contains the following information.
(in millions) December 31, 2017 December 31, 2016
Total assets $930.9 $920.1
Total liabilities 197.1 208.6
Net sales 515.7 517.4
Net income 80.7 67.2
Compute the following ratios for Tootsie Roll for 2017.
(a) Asset turnover (Round answer to 3 decimal places, e.g. 0.851 times.)
(b) Return on assets (Round answer to 2 decimal places, e.g. 4.87%.)
(c) Profit margin on sales (Round answer to 2 decimal places, e.g. 4.87%.)
Answer:
1.108 times
8.66%
16%
Explanation:
A. 2017 Asset turnover
Net sales / Average total assets
= 515.7/[(930.9 + 0)/2]
= 515.7/465.45
= 1.108 times
B. Return on assets
Net income/Total assets
= 80.7/930.9
= 0.0866 × 100
= 8.669%
C. Profit margin on sales
= Net income/Net sales
= 80.7/515.7
= 0.16 × 100
= 16%
Jia is considering whether to go out to dinner at a restaurant with her friend. The meal is expected to cost $40, Jia typically leaves a 20% tip, and an Uber will cost $5 each way. Jia values the restaurant meal at $25. Jia enjoys her friend s company and is willing to pay $30 just to spend an evening with her. If Jia does not go out to the restaurant, she will eat at home, using groceries that cost her $8.
a. Calculate Jia's cost associated with going out to dinner with her friend.
b. Calculate Jia's benefits associated with going out to dinner with her friend.
Answer:
a. Jia's cost associated with going out to dinner with her friend
= $58
b. Jia's benefit associated with going out to dinner with her friend
= $47
Explanation:
a) Data and Calculations:
Expected cost of meal = $40
Tips (20%) 8
Transport to & from = 10
Total cost of going out = $58
Benefits with going out:
Value of restaurant meal = $25
Amount Jia is willing to pay = $30
Less of eating at home ($8)
Total benefits with going out $47